NEW YORK, July 22 (Reuters) - UBS Warburg said on Monday that it was raising its rating on Ford Motor Co. to "hold" from "reduce" because its market valuation had slumped to within range of its target price of $12 per share.
"At $12, we believe the stock discounts a substantial portion of our concerns surrounding the company's prospects. We therefore upgrade the shares to Hold from Reduce," UBS Warburg analyst Saul Rubin said in a research note.
He stressed that his overall view of the world's second-largest automaker, which is struggling to implement a turnaround plan after losses totaling $5.45 billion last year, remained negative, however.
"We still believe risks are weighted to the downside," Rubin said.
Ford shares closed at $12.39 in trading on Friday on the New York Stock Exchange, well below their 52-week high of $25.84.